CFSS-2020 – Company Fresh Start Scheme, 2020

 Brief overview of the Company Fresh Start Scheme, 2020 :

-In addition to circular 11/2020 dated 24th march, 2020.

-One time opportunity of filing of forms without additional fee and immunity for prosecution and proceeding for penalty on account of such delayed filings.

-Only normal fees are required to be paid.

-It also gives an opportunity to inactive companies to get their company declared as a dormant company through a simple application with normal fee.

-This is never before opportunity and introduced by the government for the first time.

Details of the Company Fresh Start Scheme, 2020 :

• Scheme shall be from 01.04.2020 to 30.09.2020.

• In case any Defaulting co. whose compliance regarding filing is pending and has filed an appeal against any order then in that case before filing the application of immunity certificate under this section shall have to withdraw the appeal.

• In case order of penalty for non filing is already passed and no appeal is filed up to the commencement of the scheme then:

• • In case the last date of filing the appeal against order is between 01.03.2020 and 31.05.2020 additional 120 days shall be allowed for filing the appeal.

  • During the above stated additional period no protection shall be made against the co. and their officers.

• Application for seeking immunity shall be made under CFSS-2020 after closure of the scheme within 6 month from the end of the scheme.

• No immunity shall be granted in case appeal is pending.

• No immunity shall be granted in case any order is already passed and no appeal is filed An Immunity certificate shall be granted.

• Scheme shall not be applied in case of :

• • In case final notice for striking of the co. is already initiated.

  • In case an application is already made by the co. for striking off.

  • In case the co. is amalgamated.

  • In case the co. is filed an application for the dormant status.

  • In case of vanishing companies.

  • In case of charge related form and SH-7.

• After immunity the pending proceeding shall be withdrawn.

• The inactive companies shall after filing forms under these forms either to apply themselves as dormant co. or may strike off by filing their respective forms.

Some additional points of Company Fresh Start Scheme, 2020 :

• Total 76 forms were covered under this scheme including 10 forms of Companies Act 1956, 12 forms of LLP, and 54 forms Companies Act, 2013.

• This scheme is only for additional fee and not in any way related to process and other compliance aspects.

• Before filing any pending compliance make sure DIR-3 kyc to be filed and INC-22A is already filed i.e Co. need to have active status for availing the facility under this scheme.

• If all the directors are disqualified then 1 signatory is to be required to be added through the back end office of ROC for filing the required forms.

• In case of co. is required to file a form having NIL filing fee then such form is not covered under this scheme.

• Disqualification in any way will not get cured under this scheme.

• If you already filed the form with additional fee then there is no refund and the amendment is not retrospective.

• All IPEF forms were also part of this scheme.